Legal Question in Real Estate Law in Virginia

letter attached to contract binding?

I am negotiating on a house. The septic system looked bad and the seller offered to install a new one verbally but not in writing. Unsatisfied with the verbal agreement, I asked for it in writing and the broker added wording to the contract saying that the seller would provide me with a letter from a septic system company stating that the work would be done. I have 2 questions:

1) Is this letter a legally binding addendum to the contract?

2) Does simply providing me with the letter itself fulfill the contract without obligating the seller to actually do the work?

This smells funny to me, but it's my first house, and I could just be paranoid.


Asked on 2/22/01, 8:26 am

2 Answers from Attorneys

Glenn R. Tankersley Regency Legal Clinic

Re: letter attached to contract binding?

Read Mr. Press' reply; he gave you excellent advice.

Yes, it can be a binding addendum if it is clearly and unambiguously referenced in the contract. Drafters of contracts and other documents and even courts in their orders and decrees incorporate other documents by reference all the time.

However, to be sure it is all of the above, you definitely should hire an attorney to protect your interests. If you are in the Tidewater area, call me and I can refer you to some attorney(s) who do numerous real estate matters. Except for deeds and occasional leases and contracts, I don't do closings any more myself so it is not self serving on my part (or, I'm sure on Mr. Press' either) to strongly suggest retaining counsel. Whatever you pay the lawyer, it will be chicken feed compared to what you will save yourself in money and grief in the long run.

As for being "paranoid", remember, it ain't paranoia if they really are against you--or even if they MIGHT be.

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Answered on 4/06/01, 10:10 am
Daniel Press Chung & Press, P.C.

Re: letter attached to contract binding?

While a letter may be sufficient, the best way to do this would be to have it written into the contract or on a formal contract addendum, with an express statement that the obligation to do this work survives closing and does not merge into the deed. This kind of issue is why it is important to have a lawyer review all real estate contracts before signing.

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Answered on 4/05/01, 9:20 am


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